July 1, 2016
We’ve devoted some extra time to our coverage of mortgage loan interest rate trends this week, due in part to the lows rates have fallen to, and how rates have been affected by Brexit headlines. Ever since the “stay or go” vote in Britain, we’ve seen that issue make a significant impact on many non-Brit markets including our own.
Rates plunged to three-year lows or very near to them in the wake of the “leave” win in the Brexit vote. Now, markets have had some time to adjust but there is still plenty of potential for volatility depending on developments overseas and investor reaction to them. That goes for other financial issues too, not just Brexit drama.
Indeed, stateside economic data releases could also affect rates in the meantime, though all eyes have been (this week at least) on the U.K. On Thursday, rates trickled lower, and we saw 30-year fixed rate conventional mortgages in a best execution range between 3.375% and 3.5% depending on a variety of factors.
FHA mortgages are still holding at 3.25%. Will this become the new FHA mortgage loan interest rate comfort zone? It remains to be seen, but chances are good that with a three-day weekend looming we could see these rates persist until after the holiday.
That does NOT rule out other developments pushing rates higher or lower, but from when it comes simple speculation (not taking into account other possibilities) it seems logical to expect that markets may behave similarly this holiday weekend compared to past holidays. (Again, this should be taken as speculation and not locking/floating advice).
The rates you see listed here are reported as “best execution” rates which assume ideal conditions including a very well qualified borrower with outstanding FICO scores and other financials. These rates are not available to all borrowers or from all lenders. Your experience may vary.
Locking and floating remains a tricky subject. Borrowers who like the rates they are being offered should consider a mortgage rate lock with their lender; those who feel there are better rates ahead should not proceed with floating without a strategy that defines how high rates might climb once they do begin moving upward before locking and preventing further losses.
Do you work in residential real estate? You should know about the free tool offered by FHA.com. It is designed especially for real estate websites; a widget that displays FHA loan limits for the counties serviced by those sites. It is simple to spend a few seconds customizing the state, counties, and widget size for the tool; you can copy the code and paste it into your website with ease. Get yours today:
http://www.fha.com/fha_loan_limits_widget
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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